From Information Systems Management Moustafa Elazhary, Aleš Popovič, Paulo Henrique de Souza Bermejo & Tiago Oliveira ,2022

1. How Information
Technology Governance
Influences Organizational
Agility :
The Role of Market
Turbulence
From Information Systems Management
Moustafa Elazhary, Aleš Popovič, Paulo Henrique de
Souza Bermejo & Tiago Oliveira ,2022
Presenter ：CHEN,YOU-SHENG (Shane)
2022/08/25

2. JCR
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1
For Information Systems Management

3. Vocabularies 1/3
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2
P. English Chinese
1 outperform 超越
1 higher-order 高階
1 precipitate 倉促的
1 impending threats 即將到來的威脅
2 scarce 很少
2 the board level 董事會級別
2 business objectives 經營目標
P. English Chinese
2 inflated budgets 膨脹預算
2 unnecessary 不合理
2 unplanned 計劃外
4 paradox 悖論
5 responsibilities 責任
5 accountability 職責
5 prioritization 優先級

4. Vocabularies 2/3
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3
P. English Chinese
6 acquisition 獲取
7 accommodated 適應
7
emulating successful
competitors
模仿成功競爭者
7 moderates 調節
7 counter 應對
7 unforeseen 不可預見
7 realistic 現象
P. English Chinese
8
formative-
reflective type
形成型指標
8
reflective-
reflective type
反映型指標
8 senior executives 高級管理人員
8 Steering 指導
8
reinvent/
reengineer
擴大/縮小
8 disruption 分裂

5. Vocabularies 3/3
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4
P. English Chinese
9 witnessing 見證
9 cater 迎合
10 Convergent Validity 收斂效度
10 Discriminant Validity 區別效度
10
Heterotrait-Monotrait
ratio
異質-單質比率
10
the absence of
multicollinearity
不存在多重共線
性
P. English Chinese
11 spanning 跨越
13 alignment 一致性
16 auditors 審核員
16
cross- sectional
data
橫截面數據
16
longitudinal
research
縱貫性研究

6. TABLE OF CONTENTS
Introduction
Background
Conceptual model and hypotheses
1
2
3
Research design
Discussion
4
5
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5

7. Purpose
Methodology
Findings
To propose the research model and
the relationships between IT
governance, IT capability,
innovation capability,
and organizational agility under the
moderating effect of turbulent
market conditions
The structural
equation modeling –
partial least squares
(PLS-SEM) using
SmartPLS
There is scarce research investigating the
impact of IT governance on organizational
agility. There are even fewer studies that
examine this relationship under the effect of
market turbulence
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6

8. Originality
Outcome
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• Used a novel approach by extending the resource-
based view with the dynamic capabilities view to
capture the relationship between IT governance and
organizational agility
• IT and innovation capabilities fully mediate IT governance
on organizational agility
• The strong impact of both IT governance and IT capability
on organizational agility with high market turbulence
• The innovation capability highly impacts organizational
agility with low market turbulence

9. Introduction
01

10. Introduction
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9
• IT governance is crucial in maximizing the
business value of IT
• Previous studies on the business value of IT
have examined the determinants of IT
governance success (Buchwald et al., 2014) and the
role of IT governance in supporting
organizational performance (Chau et al., 2020)
• The role of IT governance in a dynamic
environment and its impact on organizational
agility is under-studied and limited research
is available to investigate that role

11. Introduction
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Organizational agility :
• enabling the firm to efficiently and
effectively manage its resources
to create value in response to
various internal and external
conditions (Overby et al., 2006 )
• helping them to manage emerging
opportunities or impending threats
• is a long-term process and a difficult
task for any organization
(Lowry & Wilson, 2016)

12. RQ
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(i) How can IT governance
influence organizational
agility ?
(ii) How can market
turbulence modify this
relationship ?

13. Background
02

14. IT governance
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13
2003 Guldentops et al.
IT governance is the management control exercised by
the board and senior management to achieve the business
objectives under normal or turbulent environmental
conditions
2014 Lioliou et al.
IT governance provides management control for IT
capability, including outsourced ones
2004
Van Grembergen
et al.
Enable the achievement of business objectives under
normal or turbulent environmental conditions
Each organization needs to select IT
practices that are appropriate to its business
objectives and industry standards and have
them reviewed and audited for compliance
regularly

15. IT capability
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14
2010 Trkman
The critical IT resources and capabilities are the ones
that serve business processes considered vital
2015 C. D. Chen & Chen Found that IT capability enables product innovation
and service innovation with improved
organizational performance
2012 J. S. Chen & Tsou
2019 Braojos et al
2016 Nwankpa & Roumani IT capability also enables digital transformation
and influences the development of digital platforms
over time
2015 Tan et al.
Each organization needs to use IT capability to support the critical
business processes, making them flexible and ready for any
needed changes in unpredictable conditions
The organization’s ability to acquire and implement IT-dependent
resources needed to achieve its business objectives

16. Innovation capability
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15
2006 Menguc & Auh The organization’s innovation capability is a
significant element of dynamic capabilities
essential to managing uncertainty generated by
market turbulence
2016 Teece et al.
Each organization needs to
support exploring and
developing innovations or
exploiting the current system to
increase organizational efficiency
(Andersen et al., 2017)
Refers to its ability to create and adopt new ideas defying its
traditional way of working

17. Organizational agility
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16
2006 Overby et al. Enabling the firm to efficiently and effectively
manage its resources to create value in response to
various internal and external conditions
2016 Teece et al.
2016 Teece et al. To emphasize the importance of managing
uncertainty while making the necessary
organizational changes
2006 Overby et al.
A management concept essential to respond to data- intensive
environments (subject to rapid and uncertain changes) is
organizational agility (Singh et al., 2013)
Each organization needs for having different business models,
organizational structures, IT systems, and investments to support
the relationship between IT and organizational agility

18. Market turbulence
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2008 Y. Xue et al.
During market turbulence, organizations are exposed
to changes in their business models
2011 K. B. Lee & Wong
Organizations with superior technical capabilities
would earn more profit in such an environment
Can lead to rapid and severe changes in customer needs and
preferences (Jaworski & Kohli, 1993) and hence pose a business processes
and the technology used high risk to current
Each organization must modify
their business processes, even
core processes, before their
competitors (Y. Xue et al., 2008)

19. Conceptual
model and
hypotheses
03

20. Conceptual model
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21. The role of IT governance
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IT governance
structure
IT governance
processes
Communication
mechanisms
Wu, S. P., Straub, D. W., & Liang, T.-P. (2015). How information technology governance mechanisms and strategic alignment
influence organizational performance: Insights from a matched survey of business and it managers.
H1a: IT governance is positively associated with organizational
agility.
Define clear roles, responsibilities
Monitoring IT operating practices
Shared understanding

22. The role of IT governance
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H1b: IT governance is positively associated with innovation
capability.
IT governance can support exploring and developing innovations or
exploiting the current system to increase organizational efficiency
(Andersen et al., 2017).

23. The role of IT governance
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H1c: IT governance is positively associated with IT capability.
Firms possessing more effective IT governance are likely to have more
effective and efficient IT capability (Peterson, 2004)

24. The role of innovation capability
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H2: Innovation capability is positively associated with
organizational agility.
Using new technologies and practices innovatively and developing new
pro- ducts and services will impact the desired organizational agility
(Ashrafi et al., 2019)

25. The role of IT capability
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H3: IT capability is positively associated with organizational agility.
Firms that hold a higher IT capability usually exceed their competitors
(Bharadwaj, 2000), as they would be in a better state to sense and respond
to changing environmental conditions (DeGroote & Marx, 2013)

26. The role of market turbulence
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H4a: Market turbulence positively moderates
the relationship between IT governance and
organizational agility.
Various pressures that affect the
governance of decision-
making processes by
demanding new resources and
capabilities from the
organization (Y. Xue et al., 2008)

27. The role of market turbulence
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H4b: Market turbulence positively
moderates the rela- tionship between
innovation capability and organiza- tional
agility.
Innovation capability can counter
the threat of competitive
innovation, including innovation
opportunities that may emerge
(Helfat & Raubitschek, 2018).

28. The role of market turbulence
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H4c: Market turbulence positively moderates
the relationship between IT capability and
organizational agility.
Companies with higher IT
capability tend to outperform
their competitors (Bharadwaj, 2000)
because they can identify and
respond to market changes
better than competitors

29. Research
design
04

30. Data collection
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• The firms from different industries in Brazil
Location
• Online survey of senior executives in medium to large
firms
Survey
• 132 valid responses (unit = the firm)
Responses
• Age : the firm’s age as years
• Size : full-time employees
Control var
• Both anonymity and confidentiality of their responses
• The survey designed in a clear format
• Using the scale reordering procedure
Others

31. Instrument development
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The constructs with multiple indicators on a seven-point scale (1
= strongly disagree, 7 = strongly agree)
We conducted a pilot study (45) before the online survey. The
pilot results showed evidence of the validity and reliability of the
instruments

32. Instrument development
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33. /44
32
Instrument development

34. Measurement model assessment
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33

35. Measurement model assessment
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36. Measurement model assessment
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37. /44
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Structural model assessment

38. Discussion
05

39. /44
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Discussion 1/5
• IT governance mechanisms
ensure that the dynamic IT
infrastructure will facilitate
the desired innovation
practice (Tiwana & Konsynski, 2010)
• That strategic alignment
enhances the innovation
process, whether in current
practice or when facing
changing market conditions

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Discussion 2/5
• One of IT governance’s main
concerns is having efficient
management of the firm’s
IT capability (J. Lee & Lee, 2008)
.
• IT governance provides
better management and
utilization of IT capability,
making it flexible and ready
for any needed changes in
unpredictable market
conditions

41. /44
40
Discussion 3/5
• Market turbulence poses challenges
and various pressures that affect
the governance of decision-making
processes by demanding new
resources and capabilities from the
organization (Y. Xue et al., 2008)
• The response may require
improving operational efficiency
with more IT investment. Such
pressure would mandate the
company to rely on its specialized
department

42. /44
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Discussion 4/5
• Companies with higher IT
capability tend to outperform
their competitors (Bharadwaj, 2000)
• They can identify and respond to
market changes better than
competitors
• Require that companies have
appropriately skilled personnel,
critical resources, and the ability of
current IT systems to adapt within
acceptable costs

43. /44
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Discussion 5/5
• Innovation capability can counter the
threat of competitive innovation,
including innovation opportunities that
may emerge (Helfat & Raubitschek, 2018)
• Early recognition of market changes
and rapid innovative responses enable
the company not only to deal with
unforeseen threats but, more
importantly, to take advantage of
opportunities as they arise

44. /44
43
Implications for practice
IT governance
provides a
framework that
enhances
managing the firm’s
IT capability in the
best optimal way
Our study provided
evidence that IT
governance is a
critical antecedent
for stability when
innovative practice
is needed
IT auditors need to
consider the
importance of IT
governance
mechanisms
(turbulent
conditions )
Effective IT
governance
provides a
reasonable
assurance for
maintaining
business continuity
(turbulent
conditions )

45. /44
44
Limitations and future research
• It would be helpful to conduct
longitudinal research
We used cross- sectional data to
evaluate the impact of IT
governance mechanisms
• extend their reach externally in a
dynamic manner and offer the
needed controls
IT governance mechanisms may
not cover some IT activities that
interface with external IT capability
• It would have been preferable to
get multiple respondents per
company to enhance validity and
reliability
Relied on a single key
respondent

46. /44
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Conclusion
We theorized that IT governance mechanisms enable the firm to
use IT capability more effectively and efficiently
RBV explains how IT governance, innovation, and IT capabilities
are potential sources for organizational agility
DCV explains a firm’s behavior under changing
market conditions
IT capability and innovation capability fully mediate the effect of
IT governance on organizational agility

47. THANK
YOU!

48. Resources
• Moustafa Elazhary, Aleš Popovič, Paulo Henrique de Souza
Bermejo & Tiago Oliveira (2022): How Information Technology Governance Influences
Organizational Agility: The Role of Market Turbulence, Information Systems Management, DOI:
10.1080/10580530.2022.2055813
• Digital Transformation Consulting Toolkit
https://slidesgo.com/theme/digital-transformation-consulting-toolkit#position-3&related-
1&rs=detail-related
• Microsoft Stock images (royalty-free images)
• Other pictures from Bing search and using CC

49. Extended learning
• 企業資源轉化為績效之研究---資源基礎觀點之延伸探討
https://www.grb.gov.tw/search/planDetail?id=1752782
資源基礎觀點（RBV）的學者們認為，當企業具有豐富的資源時，無論外界環境如何變化，企業亦能因其強大的競爭優
勢而持續生存與成長。資源基礎觀 點視企業為資源的組合，強調企業應致力於獲取具有價值、稀少、不易模仿、不 可
替代等特質的資源（即VRIN 資源），將使競爭對手無法順利模仿與取代，進而產生競爭優勢及提升營運績效。
• 中華管理評論 國際學報 企業持續性競爭優勢構面——以台灣自有品牌企業為例
(2006 年 5 月第九卷二期 • Vol. 9, No. 2, May 2006)
• 信息及相關技術控制目標 https://wiki.mbalib.com/zh-tw/COBIT
• 评估区分效度的三大方法 https://zhuanlan.zhihu.com/p/72966699
• 行為學習的探索：偏最小平方法結構方程模型
https://scitechvista.nat.gov.tw/Article/C000003/detail?ID=02d9cd8d-d6e5-4267-977e-
c79b044775c5
• 共同方法偏差：SPSS如何做Harman单因素检验？ https://zhuanlan.zhihu.com/p/443512634